As trade becomes an increasingly important part of global economies, it is natural to wonder whether certain countries have trade agreements with each other. In the case of the United Kingdom and South Africa, the answer is yes – the two countries do have a trade agreement in place.
The agreement, formally known as the Southern African Customs Union and Mozambique (SACUM) agreement, was signed in 2002 between the European Union (of which the UK was a member at the time) and several Southern African countries, including South Africa. The agreement aimed to reduce tariffs on goods traded between the two regions, as well as promote cooperation in other areas such as investment and intellectual property.
In 2021, following the UK`s departure from the EU, the SACUM agreement was replaced with a new UK-Southern African Customs Union (SACU) agreement. This new agreement largely replicates the terms of the previous agreement, with some adjustments to reflect the UK`s new status as a non-EU country.
Under the UK-SACU agreement, most tariffs on goods traded between the UK and South Africa have been eliminated, making it easier and cheaper for businesses in both countries to trade with each other. However, it`s worth noting that some products still face tariffs or other barriers to trade, particularly in sensitive sectors such as agriculture.
Overall, the UK-SACU agreement is seen as a positive development for both countries, as it provides a stable framework for trade and strengthens ties between the UK and South Africa. As trade continues to be a key driver of economic growth, it`s likely that both countries will continue to explore opportunities to further deepen their trade relationship in the years to come.